The pension savings statements for the 2020/21 tax year have now been posted.
You will only be issued a pensions savings statement if we believe you may be affected by the Annual Allowance. Due to the changes in the limits used to work out your Annual Allowance for the 2020/21 tax year, the Trustee has decided to issue a pensions savings statement if you meet the following criteria:
- have a Pension Input Amount above £40,000
- have earnings from Pearson over £150,000
- have informed us that you are subject to the Money Purchase Annual Allowance and have built up benefits in the Plan
- have requested a statement
Therefore, it is possible, that due to the change of limits, that you may not receive a pension savings statement, even if you did last year.
Please contact the pensions team if you would like a pensions savings statement, or if you have made contributions to the Pearson Pension Plan during 2020/21 and any of the following statements are true:
- you have income from other sources outside Pearson and believe your total income will be above £200,000
- you have contributed to a pension arrangement outside of the Plan during the tax year and believe you may have exceeded the Annual Allowance
- you have already taken benefits from a Defined Contribution or Money Purchase arrangement and have been issued with a certificate confirming that you are now affected by the Money Purchase Annual Allowance.
If you do receive a pension savings statement, please review it carefully. You will need the information it provides to calculate if you have exceeded the 2020/21 Annual Allowance and if you have a tax charge to pay.
Most people will not have exceeded the Annual Allowance in 2020/21. But if you have, you will need to notify HMRC and pay a tax charge before 31 January 2022, so it is important to check.
We recognise that this is a complex subject, but you can find a full explanation here.